No Common Element Taxation!

Do you ever wonder why associations don’t receive property tax bills for common elements? It’s because the Colorado Common Interest Ownership Act (CCIOA) prohibits municipalities from separately taxing common elements. Specifically, Section 105(2) of CCIOA states, “common elements shall not be separately taxed or assessed.” How, then does the government get its money? It allocates the tax among all owners in the community in accordance with their interest in the common elements. Click here to for the full version of Section 105(2).

Keep in mind, the government can still tax land owned by an association if such land is not a common element. Therefore, if your community receives a tax bill for real property, the first question to ask is whether this real property constitutes a common area. If it doesn’t, call legal counsel.